Sunday, October 16, 2022

Investing in shares - my personal opinion

Honestly, I prefer to invest in them. When my kid asked me what a stock was. I answered very briefly and understood. But this is my thinking. It's kind of a brick of a building. If you have a lot of money you can directly buy a house apartment and so on. But generally, people don't have that much money to buy a big business /huge building/. They can buy shares of that business. This business may be huge but one can afford to buy as many bricks/shares / for as much money. If this business generates revenue profit is distributed to each brick /share/ equally. Of course, after taxes are paid and a decision is made to distribute to the owners of the bricks /share/. Basically, the management of this business tries to earn more and thus proves how skilled they are to run them. So the money invested for the bricks /shares/ can bring in more revenue. If the money stays in the jar there is no way it will increase. If we leave it to the bank it may give us some interest rate depending on many factors but no more than avoiding inflation. What stocks you choose to buy depends on what type of person you are. Led by the crowd for more money. The ones you like.The ones you think are good for people and the future. It's all about thinking. The truth is simple. Everyone wants to have more money. But I at least realized that you don't have to have a lot of money but you just have to learn to manage it or put it where it moves and it increases on its own. But to achieve success we come back to the first rule of success. You have to invest in yourself to learn a lot about what you want. To be able to shortcut the mistakes made by others. Definitely back to the repository of information /books/. Then in habits and character overcome fear and start building your dream of being a successful stock investor.

Hence, when making an investment, it is wise to invest the allocated resources carefully by going through proper research as to why the company is bringing in new shares in exchange for money or a portfolio of shares, why do they want to do this fundraising activity? Is it urgent for them to launch new shares if they have not faced any serious problems in running all their operations smoothly, how have these shares been doing recently and what are their investors' expectations from them?

Author Sezgin Ismailov

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